As Low As 70 Percent Off Cleared 10 Corso Como Lost Behind China

China could have been a new opportunity for the rise of the 10 Corso Como.

According to the fashion business Express yesterday quoted sources, after the closure of SKP stores in Beijing in 2017, 10 Corso Como, a well-known buyer shop in Italy, will close the business of Shanghai stores by the end of May. The reason for closing the store is the rental of shops and the 10 Corso Como agreement with the Chinese partners, the HKEE group agreement, and the current 10 Corso Como Shanghai store is selling its store products at a minimum of 70 percent off.

Up to now, 10 Corso Como and Heji group have not responded to this news.

10 the closure of Corso Como is not surprising. The store, which is located in the golden section of Jingan Temple, has been in a cold business for a long time. I went to the shop a month ago, except for some individual customers in the cafe, and few customers in the five storey shop.

In 1990, Carla Sozzani, the sister and gallery founder and publisher of Franca Sozzani, the editor in chief of the Italy edition of VOGUE, established 10 Corso Como in Milan. 10 Corso Como is also the world's first fashion design concept store, which includes elements of art, fashion, music, design and food, and once became the pioneer pronoun of global design, art, fashion and top restaurants. Similar to the previous French Colette, 10 Corso Como has collaborated with many world famous brands to create joint brand products.

On the basis of the success of the flagship store in Milan, 10 Corso Como has been expanding with the cooperation of Wakubo Rei, Samsung and other enterprises in the Asian market. In 2002, it collaborated with Comme des Garcons to build a Tokyo branch. In 2008, it joined hands with SamSung group to build a Seoul branch. In 2013, 10 Corso Como came to an agreement with HKEE International Group, to develop different business models for the layout of the fashion area in Greater China.

However, it has not lasted for a long time. Influenced by the global fashion retail instability and consumer shopping habits, the luxury fashion retailing industry started its winter in 2015. With the potential of large-scale fashion, the fashion business began to take over the buyer's shop as the focus of the industry, while the major luxury brands made efforts to communicate with consumers directly, and the intermediary role of the independent buyer shop industry became no longer important. The profit margins were getting smaller and smaller. The buyer shop with no characteristics is facing serious challenges. The boutique shops such as 10 Corso Como have also been greatly affected.

In the past 5 years, 10 Corso Como has been running bad news which is not good enough. 10 Corso Como Milan flagship store belongs to a company called Dieci Srl, but the company does not own the whole brand of 10 Corso Como, nor owns the gallery, bookstore and restaurant of its brand, but holds the franchise right of 10 Corso Como Milan flagship store. According to the company's total deficit of 293 thousand and 400 euros (about 2 million 250 thousand RMB) in 2016, liabilities accumulated 13 million euros (about 100 million yuan).

In a media interview in 2011, Carla Sozzani admits that the 10 Corso Como is not optimistic. Dieci Srl filed for bankruptcy protection in September 2015. 10 Corso Como owes 4 million 670 thousand euros of debt to the Italy tax department. In order to continue its operation, 10 Corso Como also asked the Italy Tax Committee to extend the debt repayment period.

Affected by the continuing impact of the global retail industry, the business of 10 Corso Como in China has also become a stumbling block for HKEE international in its pursuit of IPO. In 2017, a serious loss of 10 Corso Como SKP flagship store in Beijing announced the closure. Beijing SKP is the most high-end high-end shopping mall in China. The rent is very expensive. Once the business is blocked, the performance will be dragged down. 10 the purchase budget for Corso Como Shanghai store has also been reduced.

The closure of shops in Shanghai marked the 10 Corso Como officially losing its way to the Chinese market. Analysts say that after 6 years of struggle, 10 Corso Como probably will not look for the next partner or reopen a new store.

In the past two years, the bad news of the buyer's shop has been continuous. At the end of 2017, the news of the sudden announcement of the closure of Paris's landmark Colette was a shock. The reason why people are shocked is that the declared permanent closure is not a small buying shop that indulge in self admiration and scorn to deeply understand consumers, but is the world's most famous and well traveled buyer shop benchmark Colette.

Browns, a well-known London buyer, was bought by Farfetch, a fashion dealer, in 2015. Browns, founded in 1970, has a history of 47 years. After being acquired by Farfetch, Browns has become an independent brand operated by Farfetch. Farfetch's latest "future store" service will also take the lead in Browns.

The change that the fashion industry is experiencing is structural, and the shopping habits of consumers have changed a lot. The wave of new technology is no longer something that individual power can resist. At present, the physical retail industry is experiencing a huge impact from the online business model, which is not very strong, and the fashion buyer shop is becoming vulnerable. This is a sharp contrast to the growth of luxury online retail business.

In the earlier reports, fashion headlines analyzed the reasons for Colette's closing down in detail, and the legendary store finally chose to close the store under the combined effect of internal and external causes. Some people say that the behavior of Colette shop is to rush back, just like a popular movie star suddenly announces the shadow and keeps the memory in the most prosperous state. This is also the cleverest point of Colette.

Unlike the 10 Corso Como, Colette does not choose global expansion. It knows that buyers shop has a strong personality of founder, which means it is difficult to batch copy. Once a buyer's brand enters a strange market or loses its founder's direct management, it also means the dilution of brand value and the beginning of "losing control".

10 the 6 years when Corso Como entered China is precisely the golden age of China's upgrading of consumption power, the rise of designer brands and the outbreak of buying shop formats.

But this does not mean that the failure of 10 Corso Como in China is doomed. In fact, 10 Corso Como could have used the Chinese market to expand new possibilities for the European buyer's shop model.

The 10 Corso Como entry into China in the 6 years is precisely the golden age of China's upgrading of consumption power, the rise of designer brands and the outbreak of buying shop formats. In a few short years, Chinese consumers began to have a personalized aesthetic consciousness and gradually developed the habit of shopping at the buyer's shop. These consumers are still full of novelty for buyers' shops, and have given birth to a large number of nationwide buyers' shops.

This has led to concerns about the bubble of buying shops. There is a view that there is a bubble in the status quo of Chinese buyer shops. Many buyers do not consider the scientific nature of brand combinations and commodity combinations. The selling rate is usually only about 20% to 30%, and the inventory pressure is very high and the operation efficiency is very low. At the same time, many of the buyer shops are inconsistent with the actual market situation, without taking into account the real needs of consumers, causing a fault between store location and target customers.

However, after nearly two years of shuffling, the market has gradually precipitated a number of more mature shops, so that the market's confidence in the entire buyer's shop has rebounded.

Compared with many unprofessional emerging buyer shops, the 10 Corso Como with international vision and industry foundation is very competitive. However, in this dynamic fashion change, 10 Corso Como chose to marginalized the position. In the face of the trend of the rise of Chinese designers, the 10 Corso Como continued the thinking of European buyer shops. Although some Chinese designer brand products were introduced, the 10 Corso Como in Shanghai, who was at the center of this fashion change, did not make more localization efforts.

At the same time, a large number of designer brands that do not have the ability to set up independent shops have a growing demand for buyers' outlets. They not only want buyers to sell their goods, but also want to buy their store brands with deep and diverse cooperation. Many Showroom and exhibitions have provided additional advisory services to young designer brands for business development, while some channel partners have also developed close partnership with brands, and both sides have established information feedback mechanisms. In contrast, the 10 Corso Como is still one way information spanmission with local brands and consumers, and the resources contributed to the development of China's fashion industry are also very limited.

Back to the basic retail point of view, the performance of the 10 Corso Como is also unsatisfactory. The golden section and ample exhibition space of Shanghai stores provide excellent conditions for shops to convey ideas, but bad store displays seem to offset consumers' store experience. Shops from the entrance are packed with all kinds of creative products. Clothes hangers are densely covered with clothes. The five storey shops are roughly divided into categories, but the display of various categories is chaotic and lacks focus. Apart from the iconic dots of shops, consumers do not convey clear style to consumers, and style is originally the most important competitive advantage of buyers' stores.

10 Corso Como finally failed to grasp the opportunities in the Chinese market. The landmark buyer shop in Italy finally proved its acclimatization in China, which is closely related to the frequent changes in management and the laziness of brand strategy.

Now, the reputation of the industry has been unable to provide a secure future for Colette and 10 Corso Como buyer shop brands. With the advent of oligopoly, there is little time left for "small and beautiful".